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To: KeepItSimple who wrote (63113)	6/17/1999 3:39:00 PM
From: Sam Citron	Respond to of 164684

> Valuations eventually will matter- and they'll be trading at 90% lower prices. Most will. But some will trade at much higher prices. For those people who do their research and patiently accumulate a portfolio of the best companies in this sector, I would predict great success. Although I would like to buy it at much lower prices, I continue to think YHOO will be stunningly successful. >it seems the "lottery" mentality is back The metaphor amplifies on a popular theme that AG has alluded to of late. Lotteries are, however, a negative sum game. Because of high administrative costs, subsidization of education and other areas through lottery support, lottery tickets have low expected values relative to their price. Corporate shares are very different from lottery tickets, whether the company be a dazzling internet start-up or a mundane steel producer. There is a difference between investing and speculating that unfortunately eludes most people. Investing in internet companies is essentially no different than investing in railroads in the latter part of the 19th century. Some people made incredible fortunes. Others were wiped out. But share investing is a positive sum game, i.e., the winners over time would be able to compensate the losers. The expected value of the certificate is about 10% higher per annum on the average. However, share prices on the average may diverge from intrinsic value by 15% or so in the short-run, thereby reinforcing the importance of long term investing for the average person who is not able to time the market.